After Looking at the Ads in Her Sunday Paper,Ruby Decided

question 64

Multiple Choice

After looking at the ads in her Sunday paper,Ruby decided to visit a local nursery and buy potting soil at $1.99 a bag.The regular price is $4.99 a bag.While Ruby was there she also purchased three bushes,six flowering plants,and a bird bath.You can infer from this information that the nursery used the bags of potting soil as a ________.

• A)loss leader
• B)freemium
• C)bait-and-switch
• D)price line
• E)reference price

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Definitions:

Compounded Semi-annually

A method of calculating interest where the earned interest is added to the principal every six months, allowing interest to be earned on the previously earned interest.

Lump Payment

A single, large payment made at once, instead of breaking it into smaller installments.

Amortization Period

The length of time over which the principal amount of a loan, mortgage, or other debt is scheduled to be paid off.

Amortization Period

The length of time it takes to pay off a loan or mortgage in full with regular payments that cover both principal and interest.